Natural Gas Forecast July 12, 2017, Technical Analysis

Natural gas markets shot higher during the day on Tuesday, slicing through the $3 level. However, there is a lot of noise between here and the $3.10 level above, so I’m waiting to see what happens between now and the $3.10 level, so I don’t have any interest in buying this market yet, and I think that the market is a little bit overextended. Any type of exhaustive candle would be and I selling opportunity, and that’s exactly what I’m waiting for. After all, we have a massive oversupply in this market, and that of course has not changed. I believe that the market will eventually reach towards the $2.85 level underneath, which is a massive level. I believe that the market continues to be volatile, as it is a bit thin, but quite frankly there are far too many negative issues in the market to think that we are going to hang on for a longer-term moved to the upside.

Waiting patiently

I will simply be waiting patiently for the market to continue the longer-term downtrend, and between now and then it’s probably best to step aside. The start of the day was benign, and then we saw exactly how volatile this market can be. Because of this, sometimes it’s best to simply wait for the market to get done doing its thing, and then jumping on the longer-term trend which of course will find plenty of support. Ultimately, this is a market that I think will continue to be very difficult to deal with, but the longer-term trend is the safest way to trade, and that is most certainly negative.

NATGAS Video 12.7.17